(The Standard, Aug 10, 2006) China will adjust trade policies and make the yuan more flexible to help curb a record trade surplus, the People's Bank of China said.
"We will adjust the policy bias which currently encourages exports and restricts imports, adjust the bias in the management of foreign exchange which currently encourages foreign exchange inflows and restricts outflows, and adjust the excessive use of import substitution," the Beijing-based bank said in its second quarter monetary policy report posted on its Web site Wednesday.
The trade surplus, which swelled 50 percent in the first half to US$61.5 billion (HK$479.7 billion), is flooding the economy with cash, complicating government efforts to cool investment. Premier Wen Jiabao last month called the "intensifying imbalance in international payments" one of China's five biggest economic problems.
http://www.zoomchina.com.cn/index.php?/content/view/11046/1/
2006-08-09
22:39:26
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